Small Towns Go to Bat for Wall Street Banks

This transcript has been automatically generated and may not be 100% accurate.

... Federal Reserve ... saw net today they're working on a plan that could drive banks ... of the commodity business ... but that plan is being criticized by an unexpected cold war ... small town many years Deborah Solomon wrote the story What Ryan Tracy and she joins us from Washington ... that How are you ... so this is this is sort of surprising to see in this this group of small time there's ... going to the capital city essentially ... and I criticized the Fed plan ... frankly I S I take a small towns as being aligned with Wall Street that the reckoning and they complain about and ... that at that the small towns depend on ... financial holding companies basically Goldman Sachs JP Morgan and Morgan Stanley ... to help them get natural gas and that's because of ... deregulation in the nineteen eighties that basically change the way this month he has ties to natural gas by ... Cincinnati depend on big banks to engage in complicated financial transactions that basically allow them ... to have the supply of gas and set ... aside a set price for a long period of time say they don't have to worry about where the Guinea at the gas from its beginning to a ... and what the Fed is considering doing ... could potentially push banks out of this business has said the small town and say ... as they become in Washington in and basically hitting him hard and he was at least twelve senators ... and members of Congress than that with the Fed general counsel Scott Alvarez and getting noticed the ... larger issue here is that debates in the bobbin the commodities business and there are concerns that ... the day they are they are are are are below in that business there Sunday they are doing things that are normally took the for the money business and creating problems there ... well I mean it's been a concern and I'll say that this issue that was the small town mayors are worried about is not what this primary role was was that the fact that they ... didn't realize that the rule would have started this unintended consequences of what happens when you write a will we never really know you know how far its going a ripple through the financial system ... the rule is aimed at preventing banks from ... manipulating on markets and from getting too far ahead into in areas that might pose a catastrophic risk or financial system risks ... has decide whether to do anything to remember there was concern last year about whether some of these companies might be I tidy up the price of aluminum so the beer makers were concerned that Goldman Sachs and JPMorgan were holding on to London for longer than necessary data The prices ... and said now and we got the wool was a back on that deal was actually trying and some of these other complementary commodity activities that tons of people didn't expect ... him to start the banks in order to try to get out of his business because it hasn't been as popo for them ... so ... regardless of what happens with the Fed program or the or the Townsville have to address this issue in a half ... it depends I mean they are the banks to write the big banks have started to get Addison the commodities business is ... on Goldman's China son smacks of this may sound ... like that when these guys are underway that now it doesn't look like in this thing lucrative for the banks to be honest and they basically make money from engaging in this kind of business and it's not ... it's it's not ethical or stupid like an oil tanker or a warehouse that's what they're trying to get out of ... here that the Fed has concerns about why is it bank owning of metals warehouse wife bank owning ideal of March ... but these kinds of transactions they haven't pulled out of that business but the concern is that you hafta if they're hired ... or fired is what they basically told they can't